North Carolina Highway Use Tax

The Highway Use Tax says it's paid when you transfer a title. It's in lieu of sales tax. Is this just a one time fee, or paid annually when you renew your registration? Moving to NC and have to transfer the title there so trying to understand it.

4767

Level 15

Nov 28, 2023 9:06:59 AM

In 1989, North Carolina switched from a traditional vehicle sales tax to a Highway Use Tax (HUT), a one-time charge imposed any time a vehicle title is transferred in the state (in this way, the HUT can be considered an alternative vehicle sales tax).

North Carolina website - https://ncchamber.com/2020/09/28/the-state-of-transportation-funding-in-nc-understanding-the-highway-use-tax/

Level 15

Nov 28, 2023 10:43:56 AM

@Aptexas while it is a one-time tax, you will also pay property tax on the vehicle. The rate is dependent on which county you live in.

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North Carolina Highway Use Tax